Framework for

Marketing
Eugene W. Anderson
Professor of Marketing and Associate Dean for Degree Programs

* copyright 2003 by Eugene W. Anderson. All rights reserved.

Framework for Marketing

Analyze the Situation
Situation Analysis
Assess customer needs & behaviors,
Customers Competitors Company
company
capabilities, competitor positions (3Cs)
ID key problems & opportunities (SWOT)
Formulate Marketing Strategy (STP)
Marketing Strategy Set marketing objectives
Segmentation Targeting Positioning Select target segment(s)
Select competitive position
Determine Marketing Mix Program (4Ps)
Select product, promotion, place, and price
Product Promotion Place Price
Evaluate alternatives

Marketing Mix

Market Monitoring
Market-Based Metrics

Monitor Performance and Adapt

Select internal and market-based metrics
Analyze, disseminate, & respond
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Situation Analysis

Goal: To provide a strong foundation

for making better marketing decisions

Basic Premise: Ready-Aim-Fire is

more likely to achieve desired results
than Fire-Aim-Ready

Also known as the 3Cs

Customers What are target customers

needs?
Company What special capabilities do we
possess for meeting those needs?
Competitors Who else is competing to
meet those needs?

Customers

Ultimately, it is the customer

that sets the rules of the
game

You will need to understand

the rules to win

How decisions are made

Who is involved
What information is used
The trade-offs they are willing to
make
Where & when they are ready to
buy
How the product or service is
used
Etc

Customer Analysis

What segments can be identified?

What is their size, growth &
potential?

Decision Making Unit (DMU)

Segment

Market Segmentation

Who is involved?
Who has power? Who has stake?
How great is bargaining power?

Decision Making Process (DMP)

How/when/where do buyers search,

decide, purchase, transport, store,
use, maintain, dispose, re-buy, etc
What drives perceived value?
What are customer acquisition &
retention characteristics?

Who?
What?
Where
?
When?
How?
Why?

Company

Whats special about us

(really)?

Are we doing the right

things?

Are we doing things right?

Company Analysis

How favorable is our

position?

Performance
Advantage
Resources
Tactics
Strategy

Is our position sustainable?

COMPANY
Our best marketing strategy,
given our capabilities and
marketplace dynamics

POSITION
Creates sustainable
competitive advantage in
attractive target segments

RESULTS
Achieves superior results
and increases market value
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Context

What risks might environment factors and change

present?

Context Analysis
How favorable is the PEST?

Company

Bargaining power of suppliers,

buyers, collaborators &
investors
Degree of competitive rivalry

What are the trends and

most likely future scenarios?

What are the implications

for anticipated returns?
*

Collaborators

How favorable are the

relevant competitive forces?

Complements

Value

Potential
Entrants

Suppliers

Competitors

PEST = Political, Economic,

Social, & Technological
Macroenvironment

Customers

Capital

Competitors

For long-run success, marketing strategy and tactics must take

into account likely competitive moves & counter-moves

What we do affects what they do which affects what we do and so on

So our opening move needs to take all players subsequent moves into
account

Our
Opening
Move

Our
Next
Move
Their
Best
Response

Long-Run
Positions

Their
Best
Response
10

Competitor Analysis

Who are our

competitors?

Direct, indirect, and

potential

What are their

positions?

Strategy
Tactics
Resources
Implementation
Performance

What are they likely to

do?

Identify
Competition

Anticipated future

Assess
Competition

Anticipate
Competition

Own
Behavior
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Collaborators

Who has capabilities that we

need?

Are our goals compatible?

What level of commitment is

required?

What structure & systems are

needed?

What do we need to
know/learn?

12

SWOT Analysis

Goal: To distill the Situation

Analysis down to a few
material issues that must be
addressed in developing
strategy and tactics

Identify the key problems &

opportunities

Internal strengths and weaknesses

(SW)
External opportunities and threats
(OT)

Prioritize factors identified

Is the situation favorable or not?

Why?

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SWOT Analysis
Opportunities

Strengths
Importance

Importance

Favorability

Strength 1

Oppy 1

Strength 2

Oppy 2

Strength 3

Oppy 3

Overall

Weakness
1
Weakness
2
Weakness
3
Overall

WAVG

Overall

WAVG

Weaknesses

Threats

Importance

Importance

Favorability

Favorability

Favorability

Threat 1
Threat 2
Threat 3
WAVG

Overall

WAVG

Overall Favorability = Sum of Weighted Averages (WAVG) For Each Element 14

The Marketing Plan

1.

Executive Summary

2.

Situation Analysis (3Cs)

Customer Analysis
Competitor Analysis
Company Analysis

3.

5.

Segmentation
Targeting
Positioning

6.

Marketing Objectives
Corporate
Business Unit
Product

Marketing Mix Program (4Ps)

Product
Place
Promotion
Price

SWOT Analysis
Internal: Strengths and Weaknesses
External: Opportunities and Threats

4.

Marketing Strategy (STP)

7.

Marketing Metrics
Internal and Market-Based Metrics

8.

Financial Documents
Budget, Pro-Forma, Etc
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Marketing & Performance

From a systems perspective, the purpose of the marketing

planning process is to adaptively seek to optimize the following
machine
Product

Segmentation

Acquisition
Place

Targeting

Financial
Satisfaction

Promotion
Positioning

Organizational
Retention

Price

Marketing
Strategy

Marketing
Mix

Customer
Response

Goals &
Objectives

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Summary

There is a logical process of marketing that works

The 3Cs STP 4Ps framework provides us with a blueprint or

road map for developing successful marketing plans

Although much of marketing often seems to be common

sense, it is also not human nature

Putting yourself in the other persons shoes

Knowing your self
Thinking more than one step ahead
Being able to see the forest for the trees

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